The tipping situation is absolutely stupid, but hardly the only problem. And shitty entitled customers contribute to both issues here: they treat employees poorly, and they tip poorly. Businesses should probably just kick those customers out. If you can't behave like a decent person, the business shouldn't have to accept you as a customer.

Ultimately, of course, the market will correct itself. If these service jobs are terrible enough, nobody will do them anymore, and those customers will just have to cook their own food, or accept shitty overpriced service from the few companies willing to serve them, and willing to pay employees enough to deal with that shit.

But it will be a loss to all decent people who treat people with respect and want to pay well for good service. If you want to keep those, your only option is to kick the entitled assholes out. Or you'll have no employees left.